Join millions of investors on Stash

Investing, simplified

Start today with as little as $5

Save For Retirement, or Buy a Ghost Town?

Some purchases can come back to haunt you. Buying a ghost town–yes, a literal ghost town in the California desert–could be one of them.

Cerro Gordo, a once-thriving mining town that was California’s largest producer of silver and lead during the 1860s and 1870s, is up for sale. It was home to nearly 5,000 people at one point, until the mine shut down and, and the world moved on–along with its entire populace.

Since then, the town has been privately owned, but now, it’s for sale with an asking price of $925,000. Here’s what you get for that price:

300 acres of land.

22 structures, including a hotel and bunkhouse.

Peace and quiet; Cerro Gordo is a four-hour drive from both Las Vegas and Los Angeles and is situated between Death Valley and Sequoia National Parks.

Ghost town? Or a retirement account?

Okay, let’s say you have $925,000 to invest.

Many people may find it tempting to buy their own little piece of the Sierra Nevada, but is it really a good investment? Is it better than, say, putting your money in a retirement account, like a 401(k) or IRA?

Sure, purchasing Cerro Gordo may provide a shot of excitement and offer up a tangible real estate asset to add to your portfolio, it also has some real downsides Cerro Gordo is, after all, a ghost town–meaning that the people who previously lived there found so little value that they literally packed up and left.

And while owning a ghost town may hold some value (the land, the seclusion, the dream of striking it rich a la “Deadwood”), how does it compare to putting that money in a retirement account?

Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.

Stash Investments LLC ("Stash") is an SEC registered investment adviser. By using this website, you accept our Terms of Use and Privacy Policy. Stash’s investment advisory services are available only to residents of the United States in jurisdictions where Stash is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a complete description of Stash’s investment advisory services. Certain investments are not suitable for all investors and are not available to all Stash Clients. A full list of available investments on Stash can be found here. Stash does not provide financial planning services to individual investors. Before investing, consider your investment objectives and Stash’s fees and applicable custodial fees. Stash Financial, Inc. is a digital financial services company offering financial products for U.S. based consumers. Deposit Product - (“Debit Account Services” provided by Green Dot Bank, Member FDIC). Advisory products and services are offered through Stash Investments LLC, an SEC-registered. Stash Capital LLC, an SEC registered broker-dealer and member FINRA/SIPC, serves as introducing broker for Stash Clients’ advisory accounts. Apex Clearing Corporation, a third-party SEC registered broker-dealer and member FINRA/SIPC, provides clearing and execution services and serves as qualified custodian for advisory assets of Stash Clients. Products offered by Stash Investments LLC and Stash Capital LLC are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. For more information, see our disclosures. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

*1 month equals 30 days from the date of account sign-up. Other fees may apply. Clients may incur ancillary fees charged by Stash and/or it’s custodian that are not included in the monthly Wrap-Fee.